Problem 1. Suppose the economy consists of three individuals, Brian, Dave, and Reynold who can only produce lectures and exams. The following table summarizes their hourly productivity: Opp cost of 1 exam Brian Dave Lectures 7 2 Exams 4 5 Reynold 4 3 a) Calculate the opportunity cost of producing 1 exam for each individual. b) Draw the Production Possibility Curve for this economy with exams on the horizontal axis.

Problem 1. Suppose the economy consists of three individuals, Brian, Dave, and Reynold who can only produce lectures and exams. The following table summarizes their hourly productivity: Opp cost of 1 exam Brian Dave Lectures 7 2 Exams 4 5 Reynold 4 3 a) Calculate the opportunity cost of producing 1 exam for each individual. b) Draw the Production Possibility Curve for this economy with exams on the horizontal axis.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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